Keywords: Central option to ensure a balance in the domestic market

11/30/2015 0:00

 BAGHDAD - Hussein al-Tamimi Shokran Fatlawi
Discussed the progress of the Development Studies Institute at the specialized seminar on the status of monetary policy in Iraq, which represents the tasks of the Iraqi Central Bank and the consequent action in the presence of a number of economists interested in economic affairs.
President of the institute d. Mehdi al-Hafez questioned at the beginning of his speech about the extent of truth of what is being said on the Central Bank in various media about the imbalance in monetary policy and urged the central bank governor to give a realistic picture of the details of this subject.

In turn, put d. On the Keywords Governor of the Central Bank of Iraq clarifications on dollar selling window during the past years and said: It is when we received the responsibility of the central bank and found a lot of files relating to irregularities sell the dollar port diagnosed in 2012 after the central bank instructed in this regard where these instructions were not present before year 2012, which identified the conditions of sale, and these conditions promote the procurement documents pertaining to imports and Altsrihh customs tax and settling accounts and some other requirements.

He continued Keywords saying: The instructions developed according to the vision of the Central Bank to control the sale of the dollar, which is legally and practically an order, as the central bank law stipulates that the central selling the currency in a simple, unconditional and this is reinforced by the guidelines of the International Monetary Fund, which is committed by the Member States, including the Iraq, and the role of the central bank is to make sure the money that enters the process and legitimacy of sources.

He noted the importance that the banks based on the principle Know Your Customer and has an information base on the open account and the central role of watching over the bank's commitment to this principle, either on the practical side, the real, the character of unilateral Iraqi economy, makes it imperative for the central save a certain percentage of cash inside Iraq and in the dysfunctional to inflation or vibration exchange rate, and to the Central lead this task must be continuously looks for his handling of the liquidity level in the market, noting that the tools that the central has to determine this liquidity is limited and that the general budget are determined by the liquidity ratios and central deal with this phenomenon through the available mechanism , adding that the Ministry of Finance dollar resources does not need this amount of dollars, which paid to sell surplus to the need for the central bank which is based Bembadlth Dinars.

Keywords noted that the central front of two ways to get cash either err on the currency printing or sell the dollar through auction, cash and logic avoids printed currency because it raises levels of liquidity in the market, therefore the central option that tends to sell the dollar to ensure a balance in the domestic market between the dollar and local currency.

Returned d. Mehdi al-Hafez for referring to the difficult economic situation in Iraq, which resulted from the fall in oil prices, which led to a state of economic instability, adding that this is reflected in the central bank for being an essential part of the economic system in the country.

With regard to the International Monetary Fund and the World Bank between Hafiz they refused to pay any aid unless re-examined several items in public spending, including the ration card allocations and the level of salaries and fuel subsidies in Iraq.

He pointed out that the amount proposed in the International Monetary Fund is more than one billion dollars, while the World Bank amounts to his loan assumed about $ two billion with an internal debt of more than six billion dollars, pointing out that the interest rate by the rate of 7 percent and this raises concern among citizens because of the height of the remarkable .

He noted that reliable sources confirm that the two international institutions insisting on imposing censorship on the economic and financial performance of the government, pointing out that these negative estimates the deficit make the proposed schedule impractical and far from reality and can not cover the target (deficit).

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